Cobra Resources (LSE:COBR) - Deeper Drilling Points to Bigger Copper System

[00:00:07][music] >> Hello, Rick Valenta, CEO and managing director of Cobra Resources PLC.

[00:00:15]Uh we have the Mannequin copper project and the Poland ISR rare earth project in South Australia.

[00:00:24]How are you, Matt?

[00:00:25]>> Not too bad. Not too bad. We're sweltering in summer heat, and you guys and ours for once are a bit colder than us. I love it.

[00:00:34]>> It's a very cool slab. Very jealous.

[00:00:36]Very too warm weather for >> Right. Well, look, I'm I'm I'm calling out cuz um you you put out kind of update on the Mannequin drilling um recently. I just want to sort of understand a few things. Uh I think, you know, first and foremost, you know, when we last talked, you talked about 1,800 m drill program. You've drilled slightly less than 1,500. Why the program change?

[00:00:57]>> Yeah, sure, Matt. Look, I suppose that's what we do is we need to manage uh risk and reward appropriately.

[00:01:05]Uh we initially intended to drill two holes at a target called Black Rock, which is a coincident chargeable and resistive anomaly.

[00:01:16]Uh the first hole that we drilled to about 440 m intersected a potassic zone with some lighter chalcopyrite, but due to the intensity of the pyrite that we saw in that hole, we felt like it might have been a bit too prolific to the system.

[00:01:34]So, rather than committing to that other 500-m hole, we actually just drilled a lot deeper in uh our two other skarn holes, where we've seen significant can depth continuities to existing mineralization.

[00:01:49]That's really positive uh indicators for a very fertile and extensive porphyry system.

[00:01:56]>> Well, well, just just just talk about it cuz one one of the holes you kind of hit um inside of bornite, right? Um and around a kind of um diorite and um mona- monazite intrusion. So, I would just intro- cuz I don't want to sound you don't want to sound too technical.

[00:02:11]What does that mean and why is it important?

[00:02:13]>> Yeah, sure. So, look, what what I think we need to contextualize is we have a mineralized skarn. It's very shallow. Um but that copper has been sitting this skarn system from something.

[00:02:27]Now, what we are looking for is the indicators of what where that copper has come from and um hopefully that means we've got a much bigger system. Now, what we've seen in hole two is we've seen very good chalcopyrite mineralization within the skarn leading into what we would call a potassic alteration zone of of potass- of biotite schist.

[00:02:54]And then we've seen a significant change as we've got closer to a heated source, which is a monzogranite or a and a diorite intrusion.

[00:03:03]And in this uh potassic alteration halo, we see a change in that copper mineralization or speciation from chalcopyrite to bornite. Now, why that's important is uh chalcopyrite as a mineral is 30 2 33% copper, whereas bornite's over 60%, so it has a direct impact on grade, but geologically, it is a great indicator that you're in the potassic zone of a porphyry system.

[00:03:36]So, this is showing us that the mineralization system extends beyond the skarn and into a much greater porphyry system. So, it's really encouraging um and it it has very favorable economics for the scale of of the blueberries blueberries project.

[00:03:55]>> Right. Okay. Okay. And and and again, I think we talked last time you know, you've done some RC drilling.

[00:04:03]Are you are you sort of seeing these kind of deeper sulfide mineralizations consistent with what you saw earlier?

[00:04:09]>> Yes, so whole two this second diamond whole map is drilled underneath two RC holes. One intersected 86 m at 0.6% copper.

[00:04:23]The next hole that was from 88 m and then 74 m from about 70 m depth at 1% copper, 0.25 grams gold. And this diamond hole is adding depth continuity to those intersections. So, we now have mineralization in this zone down to 300 m. So, that we're adding considerable scale and that's something that's pretty exciting cuz I mean what we're seeing now, Matt, is not just shallow oxides. We're seeing deep depth continuity of these sulfides.

[00:05:00]>> With similar grades.

[00:05:02]>> Yeah, well, look, whilst I need to be cautiously optimistic on visual observations, uh we're pretty excited about what we'll see.

[00:05:10]>> Okay. Okay. Okay. You've also encountered copper oxide mineralization kind of outside that kind of the skarn footprint that we we talked about previously. Is that right?

[00:05:19]>> Yeah, so we we stepped out a a one of the diamond holes and drilled it from the south because we get to see a lot of overturning in that skarn and we need to sort of validate and and confirm our model interpretations and unexpectedly we hit a lot of copper oxide very shallowly to the south, which opens up a lot of extension to the south of that skarn. And and very encouragingly, we we intersected sector mineralization observations for copper mineralization for a long way down that hole.

[00:05:57]>> So right okay and and and to the self face. And what was that in terms of that the expanded footprint? I mean you know in do you yet understand the kind of true widths and orientation of of of those new zones?

[00:06:12]>> What I'd say Matt is it probably shows that what we've been constrained to on drilling today. We need drill deeper and and it step out our drilling to understand the true scale extent of this system.

[00:06:29]And that's something that we're we're planning to do through another RC program in September.

[00:06:35]>> Okay. And so and just a bit broad I mean we're kind of stepping back but and but how how are you interpreting this because obviously I think you look at hole one you'd go maybe a technical success but you know maybe a I don't know how you how you interpret the data just generally because obviously it can tell you how to how to how your veteran model is working or not and then you kind of I think on hole three you kind of hit this anhydrite breccia you know so you can you just talk about how you interpret that all of that?

[00:07:09]>> Yeah. Look basically they're all very important components for the >> greater porphyry system. So anhydrite is a sulfate rich mineral that represents the mineralizing fluid of this kind of off that heat source.

[00:07:25]Now these things are not generally mineralized but they're very important because they are the source of mineralization that's coming into that skarn. Now what that tells us and and they're they're very common at some of the very large porphyry systems globally.

[00:07:42]Um but less common in Australia. So to get one of this magnitude and this size is pretty encouraging.

[00:07:50]Um but look, what are we doing now? How are we working through this?

[00:07:56]Um petrology and petrophysics are two important aspects. We work with some great people. We've just secured the services and support of Steven McIntosh who's got uh years of decades of experience with Rio exploring these systems and is currently having some huge success with Andina copper copper uh in South America. Um and we work very closely with Professor Ross Large who is a legend in terms of geochemistry in the industry. And what we're doing with them is working through things like petrophysics where we're understanding uh our reverse magnetism and how it impacts our geophysics and that will better refine our targeting going forwards because what we're seeing Matt in some of these high-grade zones is there's correlations between uh how we're modeling our magnetics with these zones. But until we really understand that intricate detail, we we can better refine our targeting going forwards. So uh we'll learn a lot and get a lot of value out of this diamond drill and >> Okay. We You talked earlier about kind of um visual estimates or or so maybe not estimates. You know, you've had sites of it but the assays aren't back yet. Not expected till August uh potentially. So when they do come back, what what's your expectation or what should we as investors you know, measure those results by? What what what what do you hope to present?

[00:09:32]>> Well, look, I don't want to shoot myself in the foot but hopefully we we see some reflections of of previous grades, and we're showing that scale. Um and look, hopefully, we see some great upside, too. So, um >> [clears throat] >> I think that they're important things that investors want to see.

[00:09:53]And as well, we want to see as a company. So, in holes two and hole four, I'd expect to see some some broader zones of mineralization with some narrower zones to the foot of of some very nice grades. So, um look, well, hopefully, only a few weeks away now before we start some of those results, and and hopefully, they'll um they'll they'll give us what we're liking to see.

[00:10:19]>> Okay. Just and Ryan Fakes, that was at 74 75 m at over 1% copper,.25 gold. Um and was it 86 m at.66 copper, is it, I think?

[00:10:31]>> Yeah.

[00:10:32]>> And and and some gold in there as well.

[00:10:33]Look, okay. Well, well, let's let's see what comes back. Let's not not try and uh get get our crystal ball out quite yet.

[00:10:40]Um you've kind of completed the uh exercised the option to acquire Manor Hill now. Obviously, um the board is is still confident about what what they're seeing. I know you're um is it your chairman or CEO um just chucked a few few rounds >> Yes. Our chair, Andrew Richmore, has has just um uh dis- hired or purchased adding 40,000 pounds worth of shares. So, that's great commitment and endorsement. All right.

[00:11:07]Pretty much an industry heavyweight in what we're doing, and um yeah, we're we're very excited to be working just with such a uh important industry figure in Australia, and and um I'm I'm getting a lot of it out of his guidance and counsel. Um I'm really excited about about working with him in a stitch.

[00:11:29]>> Okay. Okay. So, so so so so we're so far all all in on uh Manilla. Just just in terms of it's just going to give us a little kind of recap on what what's happening with Bolan Head.

[00:11:41]>> Yeah, she was We're currently working through our resource estimate and and that's that's not far away. We're working through what our pilot fuel pilot study will look like in Carson and we expect to be providing updates on those things to the market in due course.

[00:12:02]Um and we've got an extensive met program underway to support that resource estimate and and to then enable economic studies so scoping PFS level assessments. So, plenty coming on both projects. The team is flat out and we're adding to the team to be able to to resource all this work that's coming up.

[00:12:30]>> Okay, mate. Well, okay, well, we'll we'll look out for that.

[00:12:34]This is a kind of quick quick catch up with you on on the drilling.

[00:12:39]We'll we'll look out for more and we'll see you soon, okay?

[00:12:41]>> Thank you very much, Matt. Good on you.